Saturday, September 29, 2012

Most newbies to the lululemon brand grumble about the high prices but what a lot of savvy lululemon collectors know is that they can often get a good portion back or even make a profit on their "investment" in the clothes when they sell them on ebay, Craigslist, Kijiji or private Facebook Swap groups. Some examples:

A new with tags black Studio Jacket recently sold for $217 + shipping. Original cost: $128

A more typical auction - Tango Red Cool Racerback sold for $27. Original price: $42.

If you are addicted to having the latest lululemon items, you can wear your clothes a couple of times and resell for only a few dollars less, or sometimes more, than what you paid. One commenter on here declared she spends $30,000 a year at lululemon doing just that. Her net out of pocket costs are a tiny fraction of that number.

People grumble a lot about the "scarcity model" lululemon employs but it also benefits lululemon re-sellers. It keeps prices high on the secondhand market. Checkout the sale price of any Paris Pink or Flash Cool Racerback or Define Jacket on eBay.

"While this strategy [the narrow two-week return window] might work in the short-term, there's a
possibility that the plethora of items available on eBay could devalue
the brand. "Along with that underground market for basically new goods
that undercut products in the store price-wise, they are also
cultivating a pool of unhappy yoga-goers," Sozzi said"

New-with-tag items on eBay very rarely undercut the store prices. The only people able to get the current lululemon items in the stores for a discount are employees and reselling is strictly prohibited by the company. Termination is the result if you are caught. There are a number of lululemon eBay Power Sellers who make nice incomes combing their local outlets and thrift shops for bargains and then reselling on eBay at a profit. No one is giving away lululemon.

The secondhand market spreads the brand awareness even further across the globe. Cheaper prices for used luluelmon clothes enables the people who don't have as much disposable income as the target lululemon demographic to buy the brand. It spreads it to the foreign countries that lululemon doesn't ship to or where shipping charges are prohibitively expensive. Ebay shippers often ship for cheaper than the lululemon website.

As for the two-week window working against them, I don't think it's is a huge issue. Anyone who shops there is made well-aware of the return timeline. Lululemon stores receive new items weekly. The majority of their competitors only update their collections on a seasonal basis so they can stretch the return time to 30 days. I think many people are willing to trade a tight return window for more frequent product updates. Furthermore, people who are comfortable buying and selling their lulu know that if they miss the return window they can often easily sell their new with tags (NWT) items elsewhere for full price and recover their money. This is especially true when the item is sold out in the stores and on-line.

The strong secondhand market for lululemon is a major advantage for the company over its competitors. It enables people to update their lululemon wardrobe on a frequent basis and is always figured into my calculations when I buy a new piece of lululemon.

About Me

For 18 years I was an electrical engineer working in communications satellite system engineering. I've worked at Boeing, Booz, Allen & Hamilton, and General Electric. For the past ten years I've been a stay at home mom who keeps busy volunteering in my community and chauffeuring my three children to their activities. I live in Orange County, California.

The inaugural Sea Wheeze inspired me to take up running two years ago. I have completed ten half marathons and have three more scheduled for 2015. I mostly run these days but also go to the gym ~3-4 days a week for spin class, weight lifting, and cardio.

I discovered Lululemon six years ago and really liked the fit and performance of the clothes. I do check out other brands so if you would like me to review your product please contact me.

If you would like to contact me, my email address is lululemonaddict@gmail.com.